Deferred Revenue

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

The Company records deferred revenue when revenue is to be recognized subsequent to invoicing. For extended service contracts, the Company generally invoices customers at the beginning of the extended service contract term. The Company’s extended service contracts typically have one, two or three year terms. Deferred revenue also includes payments for training and extended marketing support services. Approximately 86% of the Company’s deferred revenue balance of $10.7 million as of September 30, 2021 will be recognized over the next 12 months.

The following table provides changes in the deferred revenue balance for the three and nine months ended September 30, 2021 and 2020 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Beginning balance	$	11,403	$	11,779	$	11,237	$	14,222
Add: Payments received	3,880		3,854		13,226		9,314
Less: Revenue	(2,576)		(762)		(4,851)		(2,342)
Less: Revenue recognized from beginning balance	(2,027)		(3,047)		(8,932)		(9,370)
Ending balance	$	10,680	$	11,824	$	10,680	$	11,824

Costs for extended service contracts were $2.1 million and $6.3 million for the three and nine months ended September 30, 2021, respectively, and were $1.9 million and $5.6 million for the three and nine months ended September 30, 2020, respectively.